Shares of Russian coal companies fell 5-7% during trading on the Moscow Exchange. In particular, the shares of Raspadskaya are depreciating by 5.59% in relation to the close of the previous day, at 16.43 Moscow time the price of the paper amounted to 391.36 rubles. The maximum decline was recorded at 11.28 Moscow time, then the company’s securities fell in price by 7.39%. Ordinary shares of Mechel are losing 6.67% against the close of trading on November 25 – to 110.3 rubles. per piece at 15.51 Moscow time.
Companies’ quotes are falling more than major Russian stock indices are falling. The Moscow Exchange index fell by 2.62% to 3844 points, the dollar analogue – the RTS index – fell by 3.55% to 1606 points. The shares of both industrial and oil and gas Russian companies fell in price, as did the shares of banks and retailers.
For coal companies, a negative background is also created by reports of inspections and toughening of industrial safety requirements. The head of the Russian Ministry of Energy Nikolai Shulginov said that the ministry would consider the possibility of toughening industrial safety requirements after the accident at Listvyazhnaya.
The Russian market is falling on the back of a decline in oil futures quotes. Oil prices during trading on Friday, November 26, accelerated the rate of decline to 6%, according to data from the ICE exchange. The cost of January futures for WTI crude oil as of 17.09 Moscow time decreased by 6.13% to $ 73.31 per barrel. Brent crude oil as of 17.10 Moscow time fell in price by 5.65% to $ 77.57 per barrel.
A negative news background is also created by reports on the discovery of an aggressive strain of coronavirus in South Africa and Bloomberg publications on the likelihood of an armed conflict between Russia and Ukraine. Earlier, the press secretary of the President of Russia Dmitry Peskov said that “a targeted information campaign is underway, for the stuffing they are used as a Bloomberg pipe.” “This is escalating tensions, this is, again, an attempt to present Russia as a side that threatens the settlement process, and, of course, it cannot be ruled out that this is camouflage to cover up such aggressive intentions that may take place in Kiev, we mean aggressive in terms of a possible desire to solve the problem of the southeast by force, ”said Peskov.
.